At the same time, tax revenues in the nine months of 2024 were 672.2 million euros or 6.7% higher than in the nine months of 2023.
Tax revenues in the state budget totaled EUR 10.114 billion in nine months this year, which is EUR 153 million or 1.5% less than planned.
Among them, tax revenues in the state budget amounted to 8.378 billion euros in the nine months of this year, which is 256.1 million euros or 3% less than planned, while tax revenues in the municipal budget amounted to 1.736 billion euros, which is 103.1 million euros or 6 .3% more than planned.
On the other hand, tax revenues in the state-funded pension scheme in nine months this year amounted to 626.1 million euros, which is 7.5 million euros or 1.2% more than planned.
This year, in nine months, more than was planned was collected in personal income tax, lottery and gambling tax, real estate tax, excise tax on tobacco products, as well as company income tax, while the revenues of other taxes are lagging behind the plan.
In the nine months of 2024, the most collected in social insurance contributions – 3.932 billion euros, which is 1.6% less than planned.
Value added tax (VAT) revenues in the first nine months of this year amounted to 2.832 billion euros, which is 5.5% less than planned, while personal income tax revenues amounted to 2.033 billion euros, which is 7.1% more than planned.
Excise tax revenues in the relevant period amounted to 897 million euros, which is 4.8% less than planned. Among them, excise tax revenues for oil products amounted to 436 million euros, which is 6.6% less than planned, for tobacco products – 215.4 million euros, which is 0.5% more than planned, for alcoholic beverages – 161.3 million euros, which is 6.5% less than planned, for beer – 41.8.4 million euros, which is 5.3% less than planned, and for natural gas – 10.6 million euros , which is 1.6% less than planned.
In the nine months of this year, 604.8 million euros were collected in corporate income tax, which is 0.5% more than planned, while real estate tax revenues amounted to 198 million euros, which is 1.1% more than planned.
Revenues from vehicle operation tax in nine months this year amounted to 81.2 million euros, which is 2.7% less than planned, while natural resources tax revenues amounted to 50.4 million euros, which is 8.7% less than planned .
Customs tax revenues in the nine months of this year amounted to 44.9 million euros, which is 8.7% less than planned, while lottery and gambling tax revenues amounted to 40.8 million euros, which is 3.6% more than planned.
At the same time, the light vehicle tax revenue of companies in the nine months of this year amounted to EUR 20.9 million, which is 10% less than planned, while the electricity tax revenue was EUR 3.7 million, which is 3.8% less. than planned.
In general, it is planned to collect 14.656 billion euros in taxes in 2024.
Interview Between Anna Thompson, Editor of Time.news, and Dr. Mark Jensen, Economic Analyst
Anna Thompson: Good morning, Dr. Jensen. Thank you for joining us today to discuss the recent tax revenue trends.
Dr. Mark Jensen: Good morning, Anna. It’s a pleasure to be here.
Anna Thompson: Let’s get right into it. The latest figures show that tax revenues for the first nine months of 2024 are higher than the same period in 2023, yet still lag behind planned expectations. What do you attribute this paradox to?
Dr. Mark Jensen: That’s an interesting observation, Anna. On the one hand, a 6.7% increase in overall tax revenues compared to last year is a positive sign; however, the shortfall against planned revenues indicates economic challenges. This discrepancy often arises from fluctuations in consumer spending, business performance, and unexpected economic events.
Anna Thompson: So, you’re suggesting external factors could be influencing these numbers?
Dr. Mark Jensen: Exactly. For instance, while personal income tax saw an increase of 7.1% over what was forecasted, other areas like Value Added Tax (VAT) and excise taxes fell short. This can be linked to changing consumption patterns and economic uncertainty affecting consumer confidence.
Anna Thompson: It’s fascinating how specific tax categories can diverge like that. Can you break down which taxes performed better and which didn’t?
Dr. Mark Jensen: Certainly. Notably, there’s been a significant surge in personal income tax revenues, likely bolstered by wage growth and employment gains. Conversely, VAT revenues dropped by 5.5% and excise taxes were down across various categories, including oil and alcoholic beverages. Excise tax revenues for tobacco products, however, managed a slight increase, which suggests that consumption patterns may remain relatively steady in that market.
Anna Thompson: Speaking of consumption patterns, how do you think these revenue trends affect the overall economy and public budgeting?
Dr. Mark Jensen: Revenue shortfalls were particularly pronounced in areas like the state budget, which fell 3% short of expectations. This could hamper funding for public services and infrastructure. On the other hand, the municipal budget exceeded expectations, which may indicate healthier local economies or better local governance. Balancing these discrepancies will be critical for policymakers moving forward.
Anna Thompson: With that in mind, what are some potential strategies the government could employ to address the gaps identified in the report?
Dr. Mark Jensen: There are several approaches. One would be to reassess budget allocations and spending priorities to ensure essential services are funded, even if revenue from certain taxes is lacking. Expanding the tax base by introducing or adjusting taxes, especially where consumption appears resilient, could also help bridge the gap. Moreover, encouraging compliance and reducing tax evasion would be vital.
Anna Thompson: Thank you, Dr. Jensen. You’ve shed light on how complex these financial indicators can be. As we look ahead, what should we keep an eye on regarding tax revenues and economic performance?
Dr. Mark Jensen: I would recommend monitoring key economic indicators, such as consumer confidence, employment trends, and inflation rates, as they are likely to affect tax revenues. Additionally, any policy changes made in response to current challenges will also be crucial.
Anna Thompson: Thank you for your insights, Dr. Jensen. It seems we have some fascinating developments to watch as the year progresses.
Dr. Mark Jensen: Thank you, Anna. I’m looking forward to seeing how these trends evolve!
Anna Thompson: Until next time!